Daniel F. Iuculano
Financial Planner ™
Contact: Dan Iuculano
Phone: (904) 302-8911
If you wish personal assistance in planning your divorce as it relates to your finances please email or call me to discuss creating a divorce financial plan. I have provided a link to a sample divorce financial plan for your review.
Where an accountant may understand some of the elements in isolation, a Divorce Financial Planner can help an individual understand the ramifications of all the things they're attempting to negotiate. More informed decision-making can ease the inevitable anger, grief and fear, and help the players focus on the financial integrity of all the family members.
I provided several divorce and marriage related books on the subject. Click on any of the banners to your right for further information or to purchase. I have provided a summary of each eBook outline at Divorce Tips & Resources.
The most important decision you will ever make in your life is who you choose to marry. If you failed at that don't compound your mistake by going into a divorce unprepared.
It is usually not possible after divorce to support two households at the same level as the one household before divorce. Completing the projected income/expense statement will help you anticipate your own future financial situation.
For tax purposes, child support is not income to the receiving parent and is not deductible to the parent paying it. Spousal support (alimony) is periodic support payments made to a spouse in divorce on a temporary or permanent basis. Spousal support (alimony) is periodic support payments made to a spouse in divorce on a temporary or permanent basis.
Every state is different, but if you and/or your spouse have a pension there is a good chance it/they will be subject to some form of equitable distribution.
Pension plans are complex to say the least. Each plan is different. You and your spouse may be able come to an agreement on how to split it, but to obtain the valuation will require an expert. Depending on the type of plan that you have, the "real" value may differ from the value the court assigns to it.
A "QDRO" stands for Qualified Domestic Relations Order is a separate court order awarding a share of the pension to each party in the divorce. It is very important that all pension issues be settled before the divorce is final. Even if the pension is included in your settlement agreement and you don't get the QDRO when the divorce is finalized you will have to go back to court to obtain it. This may be putting your share of the pension at risk.
Whether there is a divorce or separate maintenance agreement, taxes need to be considered in making informed choices. Even when the choices are limited, knowledge of the tax problems created by the divorce may help achieve a better settlement.
IRS Publication 504 is one of the best references for divorced or separated individuals, and provides critical tax information in areas such as filing status, exemptions, alimony, qualified domestic relations orders (QDROs), individual retirement arrangements, property settlements, community property, and legal fees and court costs.
Martial Assets - when you sell an asset such as real property or investments, there are tax consequences. Makes sure you understand the tax situation with any type of transfer or sale of an asset.
Prenup Agreement - In today's marriage society, individuals looking to remarry will want to protect themselves from a "start over," especially financially. As a result, they may turn to an attorney and draft a prenuptial agreement or a postnuptial agreement. For the most part, a Prenup can protect someone from being taken to the cleaners by an unscrupulous partner, but there are plenty of cases in which a variety of holes were found in the document that allowed the less advantaged spouse to benefit .
Inherited property, in most jurisdictions, is considered to be non-marital. However, individuals tend to mix their inherited assets with other marital assets making it difficult to segregate without extensive record keeping. Some common examples are using part of an inheritance to make home improvements, pay off accumulated debts, and buy a vacation property.